A legislative committee this afternoon rejected Gov. Bob Riley's plan to raise taxes by $40 million a year on natural gas pumped from offshore in the Gulf of Mexico.

The Government Appropriations Committee of the state House of Representatives, by a vote of 4-11, refused to pass the bill. Rep. John Knight, D-Montgomery, who chairs the committee, said he would propose another revenue-generating measure next week. Riley had counted on the $40 million increase in crafting his proposed state operating budget for non-education agencies in the year starting Oct. 1.